May 10, 2021

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Major investment transactions in the first quarter rose 53% year-on-year


lease: The value of prime investment transactions in Malaysia in the first quarter was RM 1.46 billion, an increase of 53% year-on-year (YoY), according to Savills Asia Pacific – Q1 2021 Investment Quarterly.

It said that the total value of deals in the first quarter was led by the industrial sector, which accounted for 48% of the total, followed by commercial deals with 22%.

The largest acquisition in the quarter was by Hartalega Holdings, which acquired 250 acres of industrial land in the Kota Perdana Special Frontier Economic Zone, Keda, for RM228.7 million. Hartaleja plans to invest RM7 billion to build 16 glove factories in the northern region of Malaysia over the next 20 years.

Within Greater Kuala Lumpur, UEM Land Bhd’s biggest purchase of 9.3 acres of factory land and buildings on it was from Dutch Lady Milk Industries Sdn Bhd in Division 13, Petaling Jaya, for RM200 million with plans to build a RM1.3 billion mixed-use development. Designated to be redeveloped into a mixed-use center as part of urban renewal efforts, this area has proven hugely popular, as this deal was preceded by the sale of the adjacent former Kickapoo plant, which set new price benchmarks in the area. Region, just a few months ago.

Axis REIT has entered into an agreement to purchase 7.5 acres of land and industrial buildings from FIW Steel Sdn Bhd for RM120 million. The land is located in Bukit Raja, which is a well-established industrial site in Shah Alam due to its proximity to Port Klang, along with easy access and infrastructure. Axis has also acquired two leased industrial sites totaling 16.2 acres in Johor for RM75 million, as the fund continues to cement its position as a major player in Malaysia’s rapidly expanding industrial and logistics sector.

In Kuala Lumpur itself, the most significant deal was Hex Sdn Bhd’s acquisition of two plots of leased land for the 55.5-acre development of Medan Prestasi Sdn Bhd, a wholly owned subsidiary of the MK Land Group, for RM108.8 million. Disposal of the land will improve the utility of MK’s assets. Land Group, overall financial position, and overall liquidity are goals that the company has focused on recently by seeking to dispose of some assets.